Vietnam well placed to grow

Professor Hidetoshi Nishimura, President of the Economic Research Institute for ASEAN and East Asia (ERIA), shares his thoughts with VET on Vietnam’s economy past, present and future. ■ How would you compare Vietnam’s economic development with other countries in ASEAN and East Asia? Vietnam has performed well compared with its neighbors. According to figures from the World Bank’s World Development Indicators, May 2018, GDP growth over the 2000-2016 period averaged 6.4 per cent annually, ranking an impressive fourth within ASEAN, behind only Myanmar, Cambodia, and Laos. If we take a longer-term view of GDP growth in Asia, from 1990 to 2016, Vietnam ranks second only to China. Further, growth of industry value-added (GDP-by-industry) has also risen, at a level in the middle of the range among ASEAN countries. Notably, Vietnam has also been able to grow in an equitable and inclusive manner. The poverty rate is among the lowest in ASEAN countries, at 2.6 per cent in 2014, while the Gini index, a measure of economic equality, was 35 in 2014, the most recent year for which data is available and relatively stable compared with 35.6 in 2012. This compares with 40.3 in Thailand in 2012, 36.4 in Indonesia, and 42.2 in both the Philippines and China. Vietnam’s impressive performance is the result of economic integration and domestic reforms. It could not have been achieved without strong political will and support from Vietnam’s dedicated professionals. ■ Are there any significant challenges facing Vietnam’s economic growth this year? Overall, macroeconomic indicators… [Read full story]